"Hopefully, other governments can learn from this fiasco and never let airlines own the infrastructure and get rid of competition," he told Crain's at a launch party Wednesday night at the Wit Hotel downtown.

Mr. Branson flew to Chicago after attending a royal dinner with President Barack Obama at Buckingham Palace. "He said say hello to Chicago."

He praised Aviation Commissioner Rosemarie Andolino for acquiring gates from Delta Airlines that allowed Virgin to start service this week.

Virgin, whose new, high-tech aircraft and service appeal to premium leisure and business travelers that are the lifeblood of United and other big airlines, wasted no time in wooing them. It one-upped United's offer of double frequent-flier mileage with a triple-mileage offer.

Virgin America also tweaked its rivals with a cheeky billboard across the street from San Francisco International Airport that reads "flying to the Windy City no longer blows," said Virgin America CEO David Cash, a former American Airlines executive.